Joe Lhota left his gig running the MTA at the start of the year so he could run for mayor—but don't worry, he left us all a few presents to enjoy! In addition to no new union contract (not since last January!) and the upcoming fare hike (starts next month, y'all!) the Daily News' Pete Donohue today points out Lhota also quietly approved retroactive payraises and payouts worth more than a quarter million dollars to three top agency presidents and a former executive. Classy!
The MTA and Lhota says there was little choice in the matter as the money was agreed to in contracts signed years ago and shelved during the fiscal crisis. "There’s nothing more sacrosanct in common law than contracts being honored," Lhota told the tabloid. "These contracts needed to be honored or it was going to litigation, and I was advised by counsel that we would lose."
And even riders advocates like Gene Russianoff of the Straphangers Campaign agree on that matter: "A contract is a contract, so it's their call to ask for the raises. And it's a tough one considering the managers below them have been working without a raise for years."
And yet! This is not an insignificant amount of money being handed out by the perennially cash-strapped agency—which hasn't given a raise to clerical and managerial staffers since 2008 and which hasn't had a new contract with Transit Workers Union Local 100 in more than a year. Even if the money was technically above water it sure has a bitter taste. And if we were one of the people who got paid out we might be careful about taking coffee from our underlings.
Speaking of, which MTA bigwigs should be watching their back? These bigwigs:
Metro-North Railroad President Howard Permut. He received a $98,000 check in December for raises not delivered. In January 2009, his $215,000 annual salary was scheduled to increase $14,000 - or 6.5%. Another $14,000 boost was scheduled for January 2010.
MTA Capital Construction President Michael Horodniceanu's received a lump-sum payment of $61,000. His $262,000 annual salary was supposed to rise 3% a year between July 2009 and last summer.
Long Island Rail Road President Helena Williams' windfall was $56,000. She was scheduled to receive a $14,000 raise to her $229,000 salary in 2009.
Former MTA Bus President Joseph Smith received nearly $38,000, including money for unused vacation and sick days.
With implementation of the stalled raises, Permut now earns $243,000 a year, Horodniceanu makes $295,000 annually, and Williams gets $243,000.
